What is the right age to teach children about money?
Children may not fully understand the value of money at a young age but teaching them consistently when they can grasp is always a good idea.
At the ages of 2 and 3, you can start by teaching them the names of coins and play store with them by setting up an imaginary shop and pretending to shop around with them.
As they progress to the ages of 4 and 5, you can introduce them to the idea of coupons and when you head out to shop ask them to be on the lookout for the products. This is an easy way to introduce the idea of saving to them.
For parents who start giving their children an allowance at the ages of 6 to 8, opening up a savings account for them is something you should consider. When they ask why they need to save money in the bank, introduce them to the concept of interest and how the bank pays people back for saving.
A great hobby to introduce them to at this age is coin collecting, this hobby instills the concept of saving in their minds.
While they progress to the ages of 9 to 16, teach them about comparison shopping, buy from different stores and compare the prices with them and discuss the differences with them. Here they will learn about brand names and their costs.
And when the teenage age steps in, you can introduce them to investments, watch financial news with them and discuss with them what kind of investments they can make. The idea of budgeting is a great one to reinforce in their minds.
This is the right age to talk to them about student loans and how to steer clear from them. Speak to them about alternatives like scholarships, working part time while schooling or going to an in-state university.
As they fully conceptualize the value of money, you can also teach them about giving to charity and what percentage they should set aside for it.
And lastly the It'$ My Money resources like:
The It'$ My Money™ and Sammy Rabbit Coloring Book is perfect for kids to have fun while learning that saving is a great habit and financial workshops to teach teenagers about great money concepts.
It'$ My Money A guided journal to help you manage your finances (Vol 1) is designed to enrich teenagers with simple but smart financial information. It provides inspiration quotes throughout and questions to reinforce the reading
It'$ My Money Vol2 is the second in a series of journals dedicated to financial literacy and money management. From side hustles to college funding, teenagers can be equipped with the right financial skills with this volume.
In conclusion, kids will always follow the lead of their parents/guardians. If you discuss money around them in a negative way, they will perceive money in such a mindset as they get older.
Kids are constantly observing adult behavior and building their actions on that basis.
If you would like to listen first hand from a parent about why it is important to teach children about money, the latest episode of The Money Exchange Podcast is what you need. Listen to it here
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